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L
LisaG5
April 6, 2021
Question

1099-NEC calculation

  • April 6, 2021
  • 1 reply
  • 0 views

Can someone confirm that 1099-NEC vendor totals are generated from bill due dates?  This appears to be the case with a client that enters bills into QBO.  If payments are made on different dates other than the due date, it looks like the vendor totals are incorrect on the 1099's that were issued.

1 reply

MariaSoledadG
MariaSoledadGQuickBooks Team
QuickBooks Team
April 6, 2021

Allow me to provide some information about how 1099-NEC forms are being generated in QuickBooks Online, LisaG5.

 

The 1099-NEC is the form that will be needed to report independent contractor payments for the calendar year 2020. NEC stands for Nonemployee Compensation and Form 1099-NEC is taking the place of what used to be recorded in Box 7 of Form 1099-MISC.

 

To keep nonemployee expenses separate from Form 1099-MISC and clear up some confusion with due dates, you can use Form 1099-NEC to report nonemployee compensation. Non-employee compensation includes fees, commissions, prizes, awards, and other forms of compensation for services. You can visit this article for more information: How to Modify Your Chart of Accounts for your 1099-MISC and 1099-NEC filing.

 

For more QuickBooks Online Payroll (QBOP) help articles, you can browse this link for additional resources. 

 

Reach out to us anytime if you have any other concerns with payroll forms. Don't forget, we're here for you to cater to all you need 24/7.

L
LisaG5Author
April 7, 2021

This does not answer my question at all.  I have spent almost 4 hours on this exact topic by QB chat and by phone and nobody had given me an answer.

M
MirriamMQuickBooks Team
QuickBooks Team
April 7, 2021

Hello, @LisaG5. Let me join the thread and provide information to you about the 1099 NEC calculation.

 

The data reported on Form 1099-NEC are payments totalling $600 or more in the previous year to contractors, freelancers, vendors or any other non-employees. Or for any person you've withheld any federal income tax from under the backup withholding rules. And if the amount has previously reported on Box 7, which is the total of non-employee compensation. Then, information post on the 1099-NEC.

 

You can also run the 1099 Transaction Detail report to verify the amount and the correct accounts for the 1099 NEC and 1099-MISC. To run the report, here's how:

  1. In the left menu, click Reports.
  2. Type in 1099 Transaction Detail Report in the search field.
  3. Set the necessary filters.
  4. Click Run report.

Please also know that the payments made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations since the financial institution reports these payments.

 

For more information about 1099-NEC, see the below articles:

If you have additional questions on this or anything else about QuickBooks, know I'm here to help! Have a great day.

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